PRESIDENTIAL DECREE No.

1217 October 14, 1977

MALACAANG
Manila
PRESIDENTIAL DECREE No. 1217
EXTENDING BENEFITS PROVIDED UNDER PRESIDENTIAL DECREE NO.
745 NOT ONLY TO EMPLOYEES OR WORKERS BUT TO LOW INCOME
FAMILIES IN GENERAL
WHEREAS, the Constitution of the Philippines provides that the State shall
establish, maintain and ensure adequate social services in the field of housing to
guarantee the enjoyment of the people of a decent standard of living;
WHEREAS, the housing problem of the country has grown into a critical
magnitude requiring the immediate and concrete institution of measures which
can meet the needs of Filipino families for decent dwellings;
WHEREAS, the need to resolve the housing problem therefore calls for a joint
venture between the government and the private sector;
WHEREAS, it is incumbent upon the Government to harness and promote
housing ventures in terms of capital expenditures, land, expertise and financing
including the provision for incentives and facilities to broaden the private sector
participation in the housing investment;
WHEREAS, there are domestic corporations and partnerships, which are willing
or already have plans to provide housing accommodation for the low income
group but are stymied by financial difficulties;
WHEREAS, Presidential Decree No. 745 provides such incentives but qualified
only workers, employees, and their domestic employers as the recipients of
these benefits, and it is incumbent upon government to make available such
incentives to all low income families and to those who provide housing for them;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution do hereby decree and
order the following:
Section 1. The National Housing Authority shall finance under liberalized credit
terms housing for low-income families that may be proposed by domestic
corporations, partnerships and landowners organized and existing under
Philippine law, operating for profit, for low-income groups under any or all of the
following schemes:

(a) Affordable interest rates and repayment terms;

(b) Graduated amortizations scheme in a manner that beneficiaries shall
pay smaller amortizations during the initial period of repayment; and
(c) Government subsidy of a portion of the interest payment, or a portion
of the capital cost of construction.
Section 2. Domestic corporations, partnerships or landowners as defined above
which invest funds in housing for low-income groups shall be allowed a
reasonable margin of profit if lots and dwelling units are to be sold to the lowincome groups on easy installments terms; or if the dwelling units be leased to
the low-income groups on a monthly rental basis.
Section 3. Pursuant to the above incentives, such domestic corporations and
partnerships and landowners shall enjoy tax exemptions on:
(a) Real estate taxes on the improvements which will be used for housing
by low-income groups;
(b) Taxes on income derived from the installment sales of houses to low
income groups or income derived from rental thereof; and
(c) Taxes on interest earned due to the financing of houses for the lowincome groups.
Section 4. The National Housing Authority shall define the low-income groups
qualified in this decree and the extension of housing benefits to these groups,
upon the certification of the Authority, shall entitle the domestic corporations,
partnerships and landowners to the incentives enumerated in this decree. Benefit
of this decree shall however cease upon evidence as decided by the Authority
that use of the housing units has passed to groups other than low-income
groups. The Authority shall formulate rules and regulations to implement the
provisions and intent of this section.
Section 5. The benefits of this decree shall accrue only to new projects and
development certified and approved by the National Housing Authority as eligible
for the grant under this decree.
Section 6. All laws, orders and decrees as well as rules and regulations
inconsistent herewith are hereby repealed and/or modified accordingly.
Section 7. This order shall take effect immediately.
DONE in the city of Manila, this 14th day of October, in the year of Our Lord,
nineteen hundred and seventy-seven.ct - Arellano Law Foundation